Net Neutrality

Everything You Need To Know And Nothing You Don't About: Net Neutrality

UPDATE May 15, 2014 at 2:23 p.m. EDT: Today, the FCC voted 3-2 to advance a new proposal on net neutrality. The new proposal includes two options: the reclassification of broadband as a telecommunications service (allowing it to be regulated as a public utility and thus banning companies from paying for "fast lanes") OR a new set of rules that allows companies to make deals with ISPs for "fast lanes," the details of which will be heavily-scrutinized by the FCC. The proposal will go through a comment period in which lobbyists, politicians and the public can express their opinions after which the FCC will write a finalized set of rules. That set of rules is not expected to come out until the end of this year.

Outside FCC offices across the nation, members of the public gathered to protest the "death of the open internet."

What's going on: In January 2014, The DC Circuit Federal Appeals Court ruled that ISPs can not be regulated by the FCC as if they were common carriers (telecommunications services like traditional phone services). ISPs such as Time Warner Cable or Sprint provide consumers access to the internet and, until now, the FCC's regulations made it so that ISPs had to treat all internet traffic equally, i.e.: your Google search for restaurant reviews loads just as quickly as your friend's new blog post. This is net neutrality. The change in regulation laws means that the internet could become an uneven playing field where companies with money can pay ISPs to make their content load more quickly than others.

How it affects you: The death of net neutrality means companies like Google or Amazon can pay ISPs for "internet fast lanes" to deliver content to consumers more quickly than their competitors. Content delivered more quickly? Sounds good, right? But what about all the companies, especially startups, that can't afford a "fast lane"? In the past, net neutrality allowed for a level playing field which made it possible for innovative at-the-time startups like Facebook and Twitter to grow into the widely-used behemoths they are today. Without net neutrality, startups like those wouldn't stand a chance without major investors backing them. Furthermore, if a site you like can't afford to pay for a fast lane, they're not likely to thrive online. And content-providers who are partners with ISPs are likely to be prioritized, speed-wise, whether you're interested in their content or not. Lastly, if companies are paying more to deliver content more quickly, its likely that increased cost will be passed on to the consumer. And with so few ISP options, you won't have much choice but to pony up and pay it. Getting rid of net neutrality will make the internet more like a gated community where only those with money can enter. Thus far, consumer groups as well as major internet companies such as Google, Facebook, Amazon, Dropbox, Netflix and Yahoo are opposed to getting rid of net neutrality.

The other side: So, if both consumers and the major companies who provide internet content are opposed to killing off net neutrality, who is pushing for it and why? Similar to privatized health care or education, there are consumers who are willing to pay more for quicker internet service. Companies such as Verizon and Google have already built fibre optic networks that are 100 times faster than current networks, but with net neutrality in place, what it would cost them to install these networks across the country would be more than what they could make from the companies and consumers using them. This means investors are also less likely to be interested in contributing to the development of these faster networks. Those who stand to benefit from ending net neutrality are mainly the ISPs, those who invest in the ISPs, and consumers willing to pay more for premium internet service.

Latest news: FCC chairman Tom Wheeler has re-drafted the commission's proposal to regulate broadband internet after public outrage over the potential death of net neutrality. The proposal will be officially reviewed this Thursday. [The Verge]